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WHY IS IT CALLED GIG ECONOMY?

WHY IS IT CALLED GIG ECONOMY?

The growth of freelancers in the labor market has been increasing since 2018. Further, the population of part-time workers is also rising. This workforce belongs to the Gig Economy. But, what is the gig economy? When are you a gig worker? What are the pros and cons of the Gig economy? Learn it in this blog!

What is a gig economy?

With the rise of Uber, Etsy, Amazon, Bol.com, Freelancer.com, Marktplaats, eBay, and other online platforms, you see that more and more people start working part-time, starting a side hustle, or start freelancing. This workforce participates in the so-called Gig Economy. But what is a gig economy?

A gig economy is also called a flexing economy or people-first economy. In this, people can organize their working time flexibly, and the emphasis is not on making money by working hours but on adding value. There are 2 groups of gig workers:

  • Independent
  • Group

The independent group works completely independently based on temporary jobs. While the group is self-employed on a project for a company that currently has a gap to fill. The contingent group still works for an employee and carries out a project outside of employment, such as running a webshop.

What are the benefits of the Gig Economy?

The big advantage of being a gig worker is the flexibility of your hours. You can organize these yourself and do what is necessary at that moment and what you really like. That is also the second advantage: happiness at work. Gig workers do a lot more of what they like than salaried people. Doing things is much less, and you work for value instead of a number of hours.

Technology also allows gig workers to work anywhere. Unlimited data bundles, coffee shops with WiFi, or co-working spaces make it more fun but also more social. Co-working spaces are also the place where gig workers get to work. With this, they increase their network but also job satisfaction. Keeping your status high for your boss and colleagues is no longer there now you can move more freely and do work on your convenient hours. In short, enough benefits to link the Gig Economy.

What are the disadvantages of the Gig Economy?

As a gig worker, you have no security. People in paid employment are paid on time. This is more the exception than the rule for gig workers. There is also not always certain about projects or the market for your product. This is something you have to consider and calculate well financially as a gig worker.

The risk of loneliness is also greater. Not having direct colleagues can get into social isolation more quickly. Gig workers work everywhere and nowhere, but mostly at home. Your private and work life can get mixed up, and your productivity decreases. Good time management and overview are essential to deal with this properly. Fortunately, co-working spaces have been created to counteract this.

What is the difference with normal work?

  • Improved work-life balance

The gig economy weakens the traditional economy of full-time workers, who rarely change jobs. From an independent perspective, a prosperous economy can improve the balance of the economy in most permanent jobs. The model is supported by self-employed workers who choose jobs that interest them.

  • Work and location are disconnected.

Another big difference is that work and location are decoupled. The digital age makes it possible to work much more mobile. That means freelancers can choose from various projects or temporary jobs. At the same time, employers can select the workers available for specific projects because work and location are decoupled, the independence of the employer and the employee increases. Workers in the gig economy are given a task and are usually released to complete it in their own way or from their own location.

  • Offers flexibility

Many gig workers find it offers flexibility. Gig workers have many options when they do the hours they want and work where they want. Finally, there is a variety of jobs. Every project can be different.

  • The gig economy reduces costs.

The gig economy reduces costs for employers. Employers do not have to provide work equipment to employees in the gig economy. It lets them to cut costs and simply pay for the actual work that the freelancer performs. By leveraging the gig economy, companies can have a diverse pool of flexible workers. These employees often work different hours than normal office hours.

Best Examples of Gig Economy Jobs

Let’s take a look at the solid gig economy jobs you want to consider. It helps you make money and may even become your main source of income.

  • Graphic Design
  • Digital Marketing
  • Virtual Assistant
  • Driving for Uber or Lyft
  • Web Developers
  • Proofreaders
  • Video editor, etc…

The rise of the Gig Economy

Self-employed workers are enormous, and temporary hiring is increasingly becoming the norm. Digital platforms accelerate smartly matching supply and demand (at low transaction costs). In the United States, this is known as the gig economy or platform economy.

The ‘gig worker’ does not have a permanent contract but works in the form of paid jobs or short-term contracts. That can be performed sequentially or simultaneously. Just like a musician who works ‘gig to gig’ – from one paid gig to another – so do professionals who offer themselves through such a platform. On these platforms, individual competencies are linked to specific requirements for a project. Examples in other sectors are already known:

  • Transporting people part-time via Uber
  • Renting out part of your house via Airbnb
  • Selling homemade products via Marktplaats
  • Renting out your car part-time via SnappCar or finding a plumber on Werkspot

Which companies play a major role?

Companies less dependent on contingent workers play a big role in the gig economy. This independence makes it possible to select and change personnel based on the need at that moment. It also often happens that companies with certain projects use the gig economy. It means that employers can choose the best people for certain projects from a large group. Large companies, as well as small companies, will set up a network of part-time workers to reduce costs. Moreover, then they expand their available pool and get more work done. Transportation and parking, retail, education, and healthcare sectors are included in gig economy companies.

Companies with less resources are imperative in the gig economy. Since the workforce is gig-based, companies don’t have to spend much money renting offices and providing social security and healthcare benefits. In addition, the employee is already an expert in his field, so companies do not have to incur costs for training. The expertise increases productivity.

MavenUp Creative is the best Digital Marketing Agency that helps you leverage the benefits of the gig economy by enhancing its value. Don’t hesitate to contact us to hire our services.

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